MobiKwik Rises Again, Fintech Unicorn Aims High with ₹700 Crore IPO Revival
MobiKwik's ₹700 Crore IPO Resurgence Unveiled
6 January 2024
One MobiKwik Systems renews IPO plans, aiming to raise ₹700 crore after a two-year hiatus and a significant reduction from the initial ₹1,900 crore proposal in July 2021.
The Draft Red Herring Prospectus (DRHP) outlines a potential pre-IPO placement of securities up to ₹140 crore, altering the fresh issue size. Allocation strategy includes 75% for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail individual bidders.
MobiKwik, founded in 2009, focuses on leveraging technology for financial inclusion. With marquee investors and a diverse range of financial products, the firm's renewed IPO effort reflects confidence in the current financial landscape and signifies its resilience in navigating market challenges.
One MobiKwik Systems Ltd., a fintech unicorn, has rekindled its Initial Public Offering (IPO) plans, filing papers to raise ₹700 crore after shelving the idea over two years ago. Despite being a substantial reduction from the initial ₹1,900 crore proposal in July 2021, the firm aims to utilize the funds strategically. According to the Draft Red Herring Prospectus (DRHP), the company may explore a pre-IPO placement of securities up to ₹140 crore, potentially altering the fresh issue size.
The DRHP outlines the allocation strategy, with 75% reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail individual bidders. One MobiKwik Systems plans to allocate the proceeds from the fresh issue across various avenues, earmarking ₹250 crore for financial services business growth and ₹135 crore for payment services business expansion.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik strives to leverage technology to enhance financial inclusion for India's underserved population. The company provides a diverse range of payment options and financial products through its flagship application, MobiKwik. With marquee investors such as Bajaj Finance, Abu Dhabi Investment Authority, and American Express, the fintech giant has earned its unicorn status.
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The firm's revenue from operations as of September 30, 2023, stood at ₹381.09 crore, with a profit after tax of ₹9.48 crore for the same period. MobiKwik's extensive offerings include online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC machine, and merchant cash advance. Additionally, its subsidiary Zaakpay operates as a B2B payment gateway for e-commerce businesses, holding the Reserve Bank of India's approval as a payments aggregator.
While the company withdrew its earlier IPO draft in November 2021 due to market conditions, this renewed effort reflects MobiKwik's confidence in the current financial landscape. SBI Capital Markets Ltd and DAM Capital Advisors Ltd are the appointed book-running lead managers, with Link Intime India Pvt Ltd acting as the IPO registrar. The company's equity shares are proposed to be listed on both the BSE and NSE.
As the parent company of fintech unicorn MobiKwik, One MobiKwik Systems Ltd. positions itself to join the ranks of Indian startups going public in 2024. The decision to refile the IPO is not only a strategic financial move but also a testament to the resilience and adaptability of MobiKwik in navigating the ever-evolving fintech landscape.